My GUESS is these homeowners have been tricked/screwed in to signing a long term power purchase agreement, often with no buy out provision.

I did it myself for a number of years - good rents for sure but never easy.We have found if you buy in the right areas you can have really high-quality people renting by the room though (our average credit score was >700 for a long time).Do think short-term rentals are equally (or more) challenging in my experience.Regardless of the model, I think it's a great call to offload the thinking and stress by partnering with an operator who does the heavy lifting. 

The barrier to entry seems high, and the price-to-rent ratio isn't very favorable.

Demand is very high, both for rentals as well as for sale and this is probably not going to change.

It should be pretty accurate - high level data sites are not always going to be perfect, but should always be directionally correct and AirDNA has a pretty strong track record. 

I would protect myself and cut my losses so I was not looking over my shoulder or getting high blood pressure every time I heard a knock on the door (hoping it is not the FBI showing up to ask you some questions). 

I agree that pricing a rental too high is a classic mistake than can make it sit, but don't you think encouraging landlords to rent quick will make them compromise on the vetting of the tenants?

NJ does not have a high eviction rate.Greenville doesn't have easy transportation to NYC like you find in other areas of Jersey City so it is not a highly sought after area.  

For example, most Developers in the Seattle area are taking many properties and turning them to condos since that is a booming market with high rental rates And sometimes more conveniently built and accommodating then a SFH.

Existing deals will instead be saved by NOI growth driven by rent growth--if you have the staying power to hold on long enough.Supply:  High deliveries remain today mostly because of "hang over" from projects that are taking longer to complete than developers (and industry analysts) expected.